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Automotive industry: to mass layoffs? News from Auto Plus in your smartphone News from Auto Plus in your mailbox

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Automotive industry: to mass layoffs?  News from Auto Plus in your smartphone News from Auto Plus in your mailbox

American car manufacturer Ford just announced that he will cut about 1,100 jobs in Europeas part of the reorganization of its activities on the Old Continent.

Eligible employees are based onplant in Valencia, Spainwhich is set to end production of the Ford S-Max and Galaxy in April 2023, following the discontinuation of the Mondeo last year: “About 1,100 jobs were affected”– said the press secretary of the brand, adding that Ford “will work constructively with unions to reduce impact” budget cuts “About employees, their families and the local community”.

Layoffs: 10% of Ford employees fired

The job cuts follow Ford’s announcement last month loss of 3,800 jobs also in Europe, including at least 2,300 positions in Germany and 1,300 in Great Britain.

These layoffs affect administrative positions as well as product development teams, not factory production positions. In total, these layoffs represent about 10% of Ford’s European workforce.

The reason for this socio-economic crisis? Electric car. Indeed, as the European authorities force the automotive industry to abandon internal combustion vehicles, manufacturers are forced to reduce the number of models developed for the European market in order to quickly focus on their transition to electric vehicles.

Release: the beginning of a global crisis?

The appearance of electric cars involves large-scale investments in the development of new technologies, as well as the transformation of factories. But according to the company with the blue oval, electric cars will require 40% fewer workers in its factories.

According to a recent study by PwC (PricewaterhouseCoopers), the transition to electric vehicles will be synonymous loss of at least 500,000 jobs in Europe by 2035: a social impact too often neglected by politicians who wish to phase out combustion engine cars. And if the European Union does not retreat from this issue, the social damage promises to be very significant.

Ford is not alone: ​​indeed, the auto industry is now worried about the consequences of American subsidies for electric cars produced in Uncle Sam’s country. a large part of the automotive industry which will be affected by layoffs in the medium term: manufacturers, subcontractors, equipment manufacturers, etc.

Author: Tran Kha
Source: Auto Plus

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